MIRA INFORM REPORT

Report Date :

14.05.2011

IDENTIFICATION DETAILS

Name :	KEDA INDUSTRIAL (HONG KONG) LTD.
Registered Office :	Room 2104, 21/F., Austin Plaza, 83 Austin Road, Tsimshatsui, Kowloon
Country :	Hong Kong
Date of Incorporation :	26.10.2006
Com. Reg. No.:	37321334
Legal Form :	Private Limited Company
Line of Business :	Importer, Exporter and Wholesaler of all kinds of machinery and equipment

RATING & COMMENTS

MIRA’s Rating :

A

RATING		STATUS	PROPOSED CREDIT LINE
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large

Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

ECGC Country Risk Classification List – December 31, 2010

Country Name	Previous Rating (30.09.2010)	Current Rating (31.12.2010)
Hong Kong	a2	a2

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

Company name

KEDA INDUSTRIAL (HONG KONG) LTD.

Company ADDRESS

Room 2104, 21/F., Austin Plaza, 83 Austin Road, Tsimshatsui, Kowloon, Hong Kong.

PHONE: 2417 1739, 2866 6933

FAX: 2866 6166

E-MAIL: hkkeda@netvigator.com

MANAGEMENT

Managing Director: Mr. Bian Cheng

SUMMARY

Incorporated on: 26th October, 2006.

Organization: Private Limited Company.

Capital: Nominal: HK$39,000,000.00

Issued: HK$39,000,000.00

Business Category: Importer, Exporter and Wholesaler.

Employees: 8. (Including associates)

Main Dealing Banker: Bank of China (Hong Kong) Ltd., Hong Kong.

Banking Relation: Satisfactory.

Company ADDRESS

Registered Head Office:-

Room 2104, 21/F., Austin Plaza, 83 Austin Road, Tsimshatsui, Kowloon, Hong Kong.

Holding Company:-

Keda Industrial Co. Ltd.

1 Huanzhen Xi Road, Guanglong Industrial Zone, Chencun, Shunde, Foshan, Guangdong, China.

[Tel: 86-757-2383 2929, 2383 2922

Fax: 86-757-2383 2690

E-mail: ied@kedachina.com.cn ]

Affiliated/Associated Companies:-

· Champ Will Development Ltd., Hong Kong. (Same address)

· Foshan Keda Steel Machine Works, China.

· Great Champ International Trading Ltd., Hong Kong. (Same address)

· Jiangyin Tianjiang Pharmaceutical Co. Ltd., China.

· Keda Clean Energy (Ma’anshan) Co. Ltd., China.

· Keda Industrial (Ma’anshan) Ltd., China.

· Keda Stone Machinery Co. Ltd., China.

BUSINESS REGISTRATION NUMBER

37321334

COMPANY FILE NUMBER

1083119

MANAGEMENT

Managing Director: Mr. Bian Cheng

CAPITAL

Nominal Share Capital: HK$39,000,000.00 (Divided into 39,000,000 shares of HK$1.00 each)

Issued Share Capital: HK$39,000,000.00

SHAREHOLDER

(As per registry dated 26-10-2010)

Name	No. of shares
Keda Industrial Co. Ltd. 1 Huanzhen Xi Road, Guanglong Industrial Zone, Chencun, Shunde, Foshan, Guangdong, China.	39,000,000 ========

DIRECTORS

(As per registry dated 28-01-2011)

Name (Nationality)	Address
ZENG Fei	401, G Zuo, Junjing Haoting, Songyuan Xincheng, Hecheng Lu, Chencun, Shunde, Foshan, Guangdong, China.
LIU Shouzeng	Block No. 1, #18 Qing Gong Sanlu, Chancheng District, Foshan, Guangdong, China.
BIAN Cheng	Room 202, 13 Tong Hua Road, Foshan, Guangdong, China.

SECRETARY

(As per registry dated 26-10-2010)

Name	Address	Co. No.
H & R Block (HK) Ltd.	Room 504, 5/F., Tung Wai Commercial Building, 109-111 Gloucester Road, Wanchai, Hong Kong.	0113523

HISTORY

The subject was incorporated on 26th October, 2006 as a private limited liability company under the Hong Kong Companies Ordinance.

Apart from these, neither material change nor amendment has been ever traced and noted.

OPERATIONS

Activities: Importer, Exporter and Wholesaler.

Lines: All kinds of machinery and equipment.

Employees: 8. (Including associates)

Commodities Imported: India, China, etc.

Markets: Other Asian countries, Europe, etc.

Terms/Sales: L/C, T/T, etc.

Terms/Buying: L/C, T/T, etc.

FINANCIAL INFORMATION

Nominal Share Capital: HK$39,000,000.00 (Divided into 39,000,000 shares of HK$1.00 each)

Issued Share Capital: HK$39,000,000.00

Alternation of Capital:-

Initially	paid up	HK$ 3,900,000.00
06-11-2009	paid up	HK$ 35,100,000.00
		––––––––––––––––
Total:	paid up	HK$ 39,000,000.00 ==============

Profit or Loss: Making a small profit every year.

Condition: Keeping in a satisfactory manner.

Facilities: Making rather active use of general banking facilities.

Payment: Met trade commitments as required.

Commercial Morality: Satisfactory.

Banker: Bank of China (Hong Kong) Ltd., Hong Kong.

Standing: Normal.

GENERAL

Having issued 39 million ordinary share of HK$1.00, Keda Industrial (Hong Kong) Ltd. is wholly-owned by Keda Industrial Co. Ltd. [Keda] which is a China-based firm. All the directors of the subject are China merchants residing in Guangdong Province, China.

The subject is one of the trading arms of Keda which is a machinery and equipment trader.

Keda is a listed firm in Shanghai bearing stock code 600499. It has had a main factory in Foshan City, Guangdong Province, China known as Foshan Keda Steel Machine Works which was set up in December 1982. Keda is principally engaged in the manufacture and sale of machinery products. Its machinery products include ceramics machinery, energy resource machinery, stone processing machinery and building material processing machinery. The ceramics machinery products include cloth processing machine, turn over machine, desiccator, drying apparatus, furnace, buffing machine, edge grinding machine, testing equipment, stacking apparatus. It also manufactures clean coal gasification machinery and others. Keda’s products are marketed in China and exported to overseas markets.

As of 31st December, 2009, Keda had a number of subsidiaries/associates, primarily engaged in the provision of stone machinery, new energy machinery and construction ceramics machinery, among others.

The subject is managed by Mr. Bian Cheng who is a China businessman. Bian is also the General Manager and Director of Keda.

For the year ended 31st December, 2009, the principal operating revenue of Keda was RMB1,425.7 million Yuan (2008: RMB1,159.8 million); profit attributable to shareholders was RMB179.9 million Yuan for the year (2008: RMB149.1 million Yuan).

It is likely that the subject is trading in the products of Keda and responsible for sourcing raw materials for it.

Currently, Keda has had distributors or agents in the following countries: Taiwan, India, Vietnam, Thailand, Indonesia, Malaysia, North Korea, Iran, Turkey, Egypt, Russia, the United Arab Emirates, etc. The business of Keda is rather active and steady.

The subject’s history in Hong Kong is over four years and five months.

Supported by Keda, the subject is considered good for normal business engagements.

COURT CASES: None per our.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.44.91
UK Pound	1	Rs.73.06
Euro	1	Rs.64.03

RATING EXPLANATIONS

RATING		STATUS	PROPOSED CREDIT LINE
>86	Aaa	Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums	Unlimited
71-85	Aa	Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums	Large
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small
11-25	Ca	Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity	Limited with full security
<10	C	Absolute credit risk exists. Caution needed to be exercised	Credit not recommended

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

Financial condition (40%) Ownership background (20%) Payment record (10%)

Credit history (10%) Market trend (10%) Operational size (10%)

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This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.